Insurance Through Work
- Deseree Blanco
- Mar 10
- 2 min read
Insurance through work is a benefit that many workers in the United States receive as part of their compensation package. If that is you, here is what you should know.
Once you are fired or quit, your life and health insurance benefits discontinue too. In order to keep those coverages, you will need to take over 100% of the costs, not including administrative management fees which easily makes it 105% of the cost. You may want to do this until you can secure alternative coverage. Within 30 days you should receive paperwork to continue your coverage.
Your life insurance coverage through work is not the best coverage. It is usually term insurance, usually no more than 50K, limited to no benefits in the coverage beyond the death benefit, and will likely be more expensive when you hold onto it. You will likely be better off securing private life insurance, and hold onto it regardless of what your job offers. Even if you get another job that has life insurance as a benefit, it is important you keep your private life insurance in force.
Your health insurance may be more expensive than you can afford since you wil be covering the total cost, including administrative fees.
What To Think About
If you are fired or laid off, you cannot really plan ahead except for in the case of life insurance. You really should secure and maintain your own private life insurance that is in your control, and suited for your life and your plans. When it comes to health insurance, you may want to consider keeping it (assuming your finances are able to absorb the cost) until you can secure your own health insurance. Remember, you can apply for health insurance outside of open enrollment periods under special qualified events. Losing your job and your health insurance qualifies as an exemption.
If you are planning to quit, take these things into consideration especially when it comes to your health insurance. Make sure this would qualify as a special exemption because if not, you may be without health insurance until open enrollment.
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